Singapore firm to spend $29 mln on land lease for $590 mln project in Vietnam

Singapore-based Mega Textile will spend $28.7 million to acquire land use rights for a 51-hectare land lot in VSIP Nghe An Industrial Park, central Vietnam to make a $590 million investment.

In a Wednesday announcement, Best Pacific International Holdings Limited, the parent firm of Mega Textile, said VSIP Nghe An, an industrial park per the Vietnam-Singapore Industrial Park (VSIP) model, and Mega Textile reached a letter of offer for the move on December 2.

Best Pacific, listed on the Hong Kong Stock Exchange as 2111, highlighted the investment in Vietnam aims to expand its production to capture the potential growth in the sportswear and apparel sectors, driven by the athleisure trend.

It is anticipated that Best Pacific will increase the total designed annual production capacity of its core products by approximately 10%-15% in 2026 when phase 1 of the $590-million project is fully installed and operational.

It also emphasized Vietnam’s advantages, including the country’s competitive labor cost, supportive policies, the evolving supply chain dynamics, and participation in various free trade agreements (especially the EVFTA and the CPTPP).

The firm also pointed out that setting up a production hub in Nghe An, Vietnam can provide a combination of cost efficiency and strategic advantages, making it an attractive option for businesses looking to expand in Southeast Asia.

Mega Textile Singapore Limited was established in 2022 by China-headquartered Best Pacific International Holdings Limited. It is a supplier to many global brands, such as Adidas, Uniqlo, H&M, and Victoria's Secret.

Prior to Nghe An, the firm had invested in Vietnam’s northern province of Hai Duong, with the establishment of Best Pacific Vietnam Co. Ltd. in 2015.